Guide to living and working in Bulgaria

Bulgaria

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Country Overview

 

Population

7.7m

Unemployment Rate

9.6% (11/07)

Average annual unemployment rate 1995 – 2004

15.2%

GDP

BGL41.9bn / €21.4bn / $31.8bn

GDP per head

€2,331 / $3,460

Capital

Sofia

Major language

Bulgarian

Life Expectancy (UN)

69 years (men)

77 years (women)

Monetary unit

1 lev = 100 stotinki

Internet domain

.bg

International dialing code

+359

 

Bulgaria joined the EU in January 2007, and has experienced strong growth since its major economic downturn in 1996. Successive governments have demonstrated commitment to economic reforms and responsible fiscal planning, but so far have failed to rein in rising inflation and large current account deficits. Bulgaria has averaged more than 6% growth since 2004, attracting significant amounts of foreign direct investment. Significant challenges remain: corruption in the public administration, a weak judiciary, and the presence of organized crime.


The Economy

Industries include: electricity, gas, water; food, beverages, tobacco, machinery and equipment, base metals, chemical products, coke, refined petroleum and nuclear fuel.

 

Pay

 

 

 

Human development Index

Ranking:  53rd
Index value:  0.824
 

 

 

 

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

In 2007, the Bulgarian economy had a relatively high and dynamic growth rate. Commerce and industry were the biggest contributors to the improvement in the business climate. The steady growth rate and effective labour market policies built a solid basis for more jobs and less unemployment in Bulgaria.

Some of the biggest employers in Bulgaria include: the Kozloduy Nuclear Power Plant; the Lucoil oil refinery at Bourgas; Petrol AD; the Bulgarian Merchant Shipping Company; the State-owned Air Traffic Control operator; Bank DSK; Unicredit Group; BTK (Bulgarian Telecom); Mobiltel AD; Cosmo Bulgaria Mobile; Ideal Standard–Vidima; and Craft Foods Bulgaria AD.

The Bulgarian labour market is experiencing a shortage of highly qualified engineering and technical staff in the fields of information and telecommunications technologies, computer science and mechanical engineering. There is also a lack of professionals fluent in West European languages. Tourism is among the most promising and fastest growing sectors; however there is also a shortage of qualified personnel in tourism, hotels and catering.

Applying for a job:

Job applicants must prepare a curriculum vitae (CV) to submit to their prospective employer. In addition to a CV, employers often require a job application and/or a cover letter. Other documents to be included are: (authenticated) school leaving certificates/diplomas, further training certificates, length of service certificate, criminal convictions record and a medical examination certificate.

 

Conditions and rights

Employment law:

The main source of the labour legislation in Bulgaria is the Labour Code, which was most recently amended in 2005 (“LC”). Termination of employment provisions are also dealt with in collective agreements and individual labour contracts. The LC regulates labour relationships between the employee and the employer, as well as other relationships immediately related to them. It also aims to ensure the freedom and protection of labour, good working conditions, as well as the conducting of social dialogue between the State, employees, employers and their organizations, to settle labour issues.

Working hours:

Employers usually insist on a probationary period (not to exceed six months), during which the employee can be terminated without notice. Employees older than 18 can be hired for more than 48 hours per week if they consent to it in writing.
Standard hours: Standard working time is eight hours per day in a 40-hour/5-day week. Part time is a minimum of four hours per day. A combined working week may not exceed 40 hours for persons younger than 18.

Holidays and Leave:

Every employee is entitled to paid annual leave of at least 20 working days. Disabled persons and minors are entitled to at least 26 working days. First-time employees are not entitled to any paid annual leave before they have worked eight months.
Unpaid leave: All employees are entitled to unpaid leave unrelated to their paid leave or length of service entitlements.
Sick leave: Employees are entitled to sick leave for occupational or other causes, recuperative treatment, urgent medical examination or tests, quarantine, caring for a sick family member or caring for a child placed under quarantine. For sick leave to be paid, the employee must have worked for at least 6 months.
Maternity leave: Pregnant women are entitled to maternity leave of 315 days for each child, of which 45 days must be taken before giving birth. For each day of maternity leave, the employee is paid 90% of her average daily wage.
Parental leave: After maternity leave, the employee is entitled to parental leave until their first, second or third child turns 2; and to six months of leave for each subsequent child. With the mother’s consent, parental leave can be taken by the father or by any one of the mother’s or the father’s parents. The monthly compensation amount paid during parental leave is determined by the annual Social Security Budget Act. After the paid parental leave, each of the parents, if employed under an employment contract, is entitled to unpaid parental leave of six months which can be taken at any time before the child has turned 8 years old.

Public holidays: 1 January; 3 March; 1 May; 6 May; 24 May; 6 September; 22 September; 24–26 December; and two days at Easter (Sunday and Monday).

 

Contracts

Types of employment:

Under the Bulgarian Labour Code, the minimum age for employment is 16. Employees younger than 18-years old can be hired subject to a permit from the Labour Inspectorate. Employment can be permanent or of limited duration and on a full- or part-time basis.

Employment contracts:

An employment contract is required by law. It is written before the employee has assumed his or her duties and sets out a description of the workplace, the job title, the date of conclusion and the contract’s term of validity, the duration of annual and any additional paid leaves, the employee’s wages and the length of the working day or week. Employment contracts can be concluded for a fixed or indefinite term. A fixed-term contract may not be longer than three years and it expires on the completion of a specified job or on the return of a permanent employee, if agreed to substitute for that employee.

 

Visas and work permits

Visas:

Nationals of certain countries can visit Bulgaria for up to three months without a visa, but will need to be granted a work permit or visa to take up employment. Citizens of the following countries, with valid regular passports, have the right to stay in Bulgaria up to 90 days without a visa:
Andorra, Austria, Australia, Belgium, Canada, Croatia, Czech, Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Monaco, Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, Romania, San Marino, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tunisia, UK, USA, Vatican City and Yugoslavia,
Holders of passports not mentioned above will need to obtain a visa to enter Bulgaria.

The main types of visa are:

  • An airport visa - enables a change of flight at the airport without entry to Bulgaria.
  • A transit visa - the holder of the visa must leave Bulgaria within 24 hours of the time of entry.
  • A short term visa - permits entry on one or more occasions for a maximum period of 90 days. The visa is valid for 3 months from the date of issue.
  • A long term visa - valid for a number of entries into Bulgaria for up to 90 days. The visa is valid for a maximum period of 12 months.


To apply for visas, contact your nearest Bulgarian Embassy or Consulate.

Permanent Resident’s Permit:

The spouse and children of Bulgarian citizens or of foreigners with a permanent resident's visa are eligible for this permit. A permanent resident's visa is issued to persons who have lived permanently in Bulgaria for more than 10 years, or more than six years in the case of anyone having business interests in Bulgaria.

Work Permits:

Foreigners with a permanent resident's permit and refugees who receive sanctuary in Bulgaria are entitled, like other Bulgarian citizens, to work in Bulgaria. Temporary work permits are issued to foreigners and bear the name of the foreign worker, the name of the employee and the period for which the permit is valid. A work permit is not granted if the work can be undertaken by a Bulgarian citizen. An employer cannot hire foreign workers in excess of 10% of his total work force. Foreigners who work in Bulgaria as self employed individuals or as partners in a business, must take out the relevant insurance cover. The insurance premium is between 29% - 32% of income. Prospective employers should apply for work permits for new employees at the local Labour Office. Foreigners with an employment contract and a work permit can apply for residence for the duration of the contract.

 

Tax, social security and healthcare

Taxation:

In Bulgaria, income tax for an individual is payable at a rate of between 15% and 29%. Employers deduct income tax and national insurance contributions directly from an employee’s salary. Bulgaria has a Double Taxation Prevention agreement with many countries, including the UK, France and Canada, so that tax paid in one country is offset against that payable in the other. VAT is 20%, payable on assets and services in Bulgaria, as well as imports into Bulgaria. Exports from the country are exempt.

Social Security:

The public social security system is run by the National Social Security Institute. The system provides benefits, allowances and pensions for sickness, temporary or permanent disability, maternity, unemployment, old age or death.
Everyone employed for more than five working days or 40 hours per calendar month must be covered for all social security risks. The contributions to social security required from employees are made by the employer from the employee’s monthly wages. Self-employed persons are also self-insured for social security purposes. Social security contributions are assessed as a percentage of all earned income, whether paid or accrued. Contribution rates and the proportions to be made by the insurer and by the beneficiary are set by the Social Security Code. Contributions to the Occupational Accident and Disease Fund are made entirely by the insurers.

Healthcare:

The following are subject to compulsory health insurance: all Bulgarian citizens who do not hold dual citizenship; all Bulgarian citizens who hold dual citizenship but reside permanently in Bulgaria; foreign citizens and stateless persons who reside permanently in Bulgaria; persons of recognized refugee or humanitarian status or persons granted asylum in Bulgaria; foreign graduate or undergraduate students at Bulgarian universities or research establishments.
Health insurance contributions are withheld from monthly wages. Persons who are subject to health insurance in another member state are exempt from contributions to the National Health Insurance Fund in Bulgaria. Those who do not hold national health insurance pay the full cost of medical service. In addition to the national health system, there are many private consulting rooms and clinics in which patients pay the full cost of medical treatment regardless of their health insurance status.

 

Lifestyle

Bulgaria, since joining the EU, is developing a market economy, so growth is bullish, but there are inconsistencies in quality across the country in terms of education, healthcare and infrastructure, whilst the cost of living remains low. The natural environment is unspoilt, providing opportunities for relaxing time away from the cities.

 

 

Report complied: 2008
Copyright © 2008 Exposure Jobs